27th Feb 2019 09:52
LONDON (Alliance News) - Avingtrans PLC swung to an interim profit, the company said on Wednesday, with its Hayward Tyler Group acquisition helping to drive revenue growth.
Revenue for the six months to November 30 was GBP47.7 million, from GBP26.9 million a year prior, helped by both Hayward Tyler as well as organic growth of 11%.
Avingtrans, which makes equipment and systems for the energy and medical sectors, bought Hayward Tyler in a reverse takeover in the summer of 2017 in an all share deal.
Pretax profit came in at GBP649,000, after a GBP4.8 million loss a year before. On an adjusted basis pretax profit was GBP1.6 million, swinging from a GBP100,000 loss. The comparison period was impacted by one-off costs related to the reverse takeover.
Avingtrans increased its interim dividend by 7.7% to 1.4 pence per share.
"The former Hayward Tyler Group businesses have continued to improve financially post-acquisition and we are engaged in the investment and development phase of our stated PIE strategy," said Chair Roger McDowell.
"This will enable us to fully realise the underlying value of the Hayward Tyler and Peter Brotherhood businesses. Our main business units are performing well. We continue to make good progress with new business - especially in nuclear," he continued.
"Since acquisition in February 2018, the Ormandy business has improved steadily and promises to produce a significant uplift in the value of our investment. The recent acquisition of Tecmag further cements our plans for the MRI and NMR markets.
"Notwithstanding global macroeconomic uncertainties, we remain confident about our prospects in both the Energy and Medical sectors. Recent orders and prospects underpin the confidence in our outlook."
Avingtrans shares were 1.5% higher on Wednesday morning at 213.20 pence each.
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